Do you have a Term Insurance plan that you regret buying

An Insurance policy is like a safety net, but have you ever bought a policy because the agent was a friend, a neighbour or a relative, and later regretted on it?

Often, most of us fail to do our research or ask the right questions before purchasing an insurance policy. Why? Sometimes the lump sum amount at maturity or the rush to complete the process shifts our attention from the important factors. In this whole process, we fail to realise that investment and insurance are two different components.

How Do You Know That You Are in A Troubled Situation, Financially?

Ajay purchased a term insurance plan as he fell into the trap of ‘money back policy’ and ‘pick before the golden period ends’. In the end, he was left with a plan that provides low coverage and low yields. If you are sailing in the same boat as Ajay and have a home loan, car loan or gold loan to pay, ponder on these questions: Will your loved ones be in a position to repay the debt in your absence? Will the maturity amount help your family lead a comfortable life? Will the insurance cover help your spouse to cover major expenses in your absence? Are you the breadwinner of your family? Will your demise impact your family both emotionally and financially? If the answers to these questions make you regret your current plan, look for a pocket-friendly insurance plan.

Buying a plan after an unsuccessful one can be challenging especially if you are facing financial strain. But, don’t stop here, look for an insurance policy with a lower premium. A term insurance policy would be a pocket-friendly plan. Aegon Life’s iTerm plan offers competitive premium with a high cover. For instance, if you are a 26-year-old individual with a salary of Rs. 3.5 lakhs per annum, your annual premium for term plan would be around Rs 4000 per year. This depends on various factors; whether you are a smoker or not, annual income and more.

If you are the sole earner of your family with dependents to look after, then a term insurance policy will help your family, immensely. Because in your absence, love is just one thing that would be in their memories, what about finances? So, whether you opt for a cover of 50 lakhs or 2 crores, as per your annual income, this amount will help your family in your absence.

At the same time if you are a working professional with a family and have not given insurance a thought, its time you ponder on this. Why? Now you are living a happy life with a great annual income, but financial instability in the form of demise of the sole breadwinner can knock at your door, anytime. Therefore, use this time to research and make a wise decision; of shielding your family in your absence. A term insurance policy is a great plan to ensure your family lives a comfortable life even in your absence.

The Bottom-Line

Despite the above-mentioned benefits, people often mistake insurance with investment. These are two different platforms. While term insurance policy is a death benefit plan, which ensures coverage in your absence with no returns of cash value on the maturity of the plan. If you keep the maturity benefit aside, this is a great plan to ensure financial stability.

However, before you purchase a term insurance policy, research what suits your needs, consider your annual income, family lifestyle, growing needs, inflation while selecting a premium and coverage option. Choose Aegon Life’s iTerm plan, which will be a life companion with you in this journey. With a coverage of up to 100 years, iTerm secures your family with the cover amount you choose against a monthly or annual premium. It is the one plan we recommend if you want to assure your loved ones of cost effective protection in case of an unforeseen event.

In addition, make sure you check the product type, tenure, coverage, benefits, rider, and more before signing up for any term plan. Also, don’t fall prey to offers that push you to make decisions in a haste. Make a sound decision, because remember your family’s financial future depends on your financial decision taken today.

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Additional Disclaimers

THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. THE LINKED INSURANCE PRODUCTS DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICYHOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR.

For more details on risk factors, terms & conditions please read sales brochures and benefits illustrations carefully before concluding a sale. Products and as such, are subject to risk factors • The premium paid in unit linked life insurance policies are subject to investment risks associated with capital markets and the NAV’s of the units may go up or down based on the performance of fund and factors influencing the capital market and the policy holder is responsible for his/ her decisions • Aegon Life Insurance is only the name of the Insurance Company. Aegon Life iMaximize Insurance Plan and Aegon Life iInvest Insurance Plan is only the name of the unit linked life insurance contract. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. The non-guaranteed projected investment returns of 4% and 8% are not guaranteed. Please know the associated risks and the applicable charges, from your insurance Agent or the Intermediary or policy document of the insurer .If death occurs due to suicide within 12 months from the date of commencement of risk or of the Policy, the death benefit is refund of at least 80% of the premium(s) paid provided the Policy is in-force. If death occurs due to suicide within 12 months from the date of revival of the Policy, the death benefit is higher of 80% of the premiums paid till the date of death or the Surrender Value available as on the date of death. If death occurs due to suicide within 12 months from the date of exercising life stage option (resulting in the increase in death benefit), the death benefit is the aggregate of the following: Original Total Sum Assured, plus any increased Sum Assured purchased by exercising the life stage option prior to 12 months from the date of death (due to suicide); plus 80% of the premiums paid for the last increase in Sum Assured. The premiums paid and benefits received are eligible for tax benefits under section 80C and 10 (10D) of the Income Tax Act of 1961, respectively on fulfilment of conditions laid down for availing such benefits. Please consult your tax advisor for details. Goods & Services Tax announced by Government or statutory body in future would be levied as per the applicable laws.